Countersignature Law

(redirected from Countersignature Laws)

Countersignature Law

In the United States, a law requiring an insurance policy to be signed by an insurance agent who is licensed to practice in the state where the policy is issued. Countersignature laws are not federal, but rather exist at the level of individual states.

The ruling is a victory for The Council of Insurance Agents & Brokers, which has gone to federal court in six states and jurisdictions where countersignature laws remain on the books, arguing those statutes are unconstitutional.

At the request of the committee Harter specifically addressed, during his oral presentation, some of the key competitive challenges faced by multi-state insurance producer operations, to include countersignature laws.

They include the refusal of certain states to recognize risk retention group coverage as evidence of financial responsibility with regard to certain liability coverages; the policy of some states to impose a surplus lines tax on risk retention groups rather than taxing them as admitted insurers (the current requirement results generally in a higher tax rate); the practice of some non-chartering states to charge high filing fees; and the need to clarify countersignature laws.

Likewise, she points to other barriers to entry for nonresident producers, key among them countersignature laws that several states, most notably Florida, continue to carry on their books.

Specifically, he pointed out that while only a few jurisdictions still have countersignature laws, less progress has been made on what he termed the "secondary level" of statutes that act in concert with countersignature laws.

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.